Victoria Beckham’s high-end fashion firm is allegedly in debt of £53.9 million. Now, Victoria Beckham is resorting to the sale of expensive clothing at up to 70% discount to recover her losses.
In 2008, the 48-year-old fashion designer debuted her eponymous fashion business with a limited run of clothing. Proliferating into a global company, it now includes a wide variety – including purses, jackets, shoes, and accessories.
However, the brand’s future is now questionable, after a spokesman for Victoria Beckham confirms the statistics for her fashion business to The Mirror. The Outnet, a luxury online discount retailer, is lowering prices on her products, increasing the reductions from the customary 30% off to a stunning 70% off.
Per The Daily Mail, a report says,
“Total revenues for the Victoria Beckham Holdings group fell 6% to £36.1m (2019 – £38.3m) due to the effects of the global pandemic.”
Going on to state that,
“This group rapidly responded to the effects of the pandemic and controlled its cash and expenditure which led to a significant reduction in its operating losses by 57%, thanks to cost efficiencies across the business and the recalibration of its business model to make it sustainable for the longer term.”
Debts and Losses
Despite significant losses, the Beckhams’ global business, reportedly more than doubled its profits throughout the pandemic. Despite the outbreak, the two made £11.6 million in the fiscal year ending December 2020. This is up from £4.5 million in 2019, according to annual papers filed with Companies House in London.
Recent findings that Victoria’s fashion company had accrued debts totalling more than £46 million since its beginning, auditors warn of “serious concern” regarding the company’s ability to continue operating in 2021 accounts. Mrs Beckham’s cosmetics line, which she launched in 2019, lost £4.7 million in February 2021, according to reports. Per Dailymail,
“Whilst 2019 was a challenging year, the business halved its losses – a significant step in the road to profitability. The launch of the hugely successful beauty line in the same year helped drive overall revenues up 7% on 2018 and both businesses are focussed on profitable growth.
There’s hope yet. Victoria Beckham’s AW21 fashion collection has been well-received by fashion critics. Also, the beauty business is seeing multiple sell out – an indication that the Victoria Beckham brand can make a recovery.
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